Over the course of three years, the State Service for Regulation and Supervision of Financial Markets and the World Bank will work towards raising the quality of audit services and building trust in the audit profession, as well as strengthening financial reporting capacity and raising public accountability of state-owned enterprises. In addition, the KAREP project will help SMEs to bridge their accounting knowledge gap and compile financial statements acceptable to local banks, thus, contributing to improvement of access to finance for smaller businesses.

“KAREP is an important government-driven and government-led initiative to modernize and strengthen corporate financial reporting policies and practices in the public and the private sector in Kyrgyzstan. This will contribute to improved governance through the adoption of international best practices in financial reporting and auditing. This is an ambitious goal, but we certainly have the right partners to succeed,” said Ambassador of Switzerland to the Kyrgyz Republic Véronique Hulmann.

“Increasing transparency and accountability of the Kyrgyz economy is among the priority tasks of the Kyrgyz Government’s “40 steps to New Era” and also of the 2014-2020 Strategy for development of financial reporting of the Kyrgyz Republic,” said Sanjar Mukanbetov, head of the State Service for Regulation and Supervision of Financial Markets. “The project will contribute to building a more transparent relationship between the state and the private sector, which is prerequisite for promoting competitiveness, diversification, productivity and job creation in the Kyrgyz Republic.”

Bolormaa Amgaabazar, World Bank Country Manager in the Kyrgyz Republic stressed the importance of the effective financial reporting as a measure to improve business environment in the Kyrgyz Republic. “The improved understanding and use of financial information will establish a basis for informed decision making by business owners, investors and lenders, enhanced supervision by regulators and better access to finance for growing enterprises.” said Bolormaa Amgaabazar.

The project will benefit the Kyrgyz business community and other stakeholders, including state and privately owned companies, SMEs, Kyrgyz government and regulators, accounting and audit profession in general, as well as students majoring in related disciplines. It will be managed by the Centre for Financial Reporting Reform (CFRR), the World Bank’s specialist center in Vienna for providing knowledge and advisory services to support reforms in financial reporting.

The Government of Switzerland provides assistance for the development of the Kyrgyz Republic. The overall objective of its cooperation program is to promote peace and social cohesion as well as responsive and inclusive institutions and a sustainable development to improve the well-being of the population. Over the last 25 years Switzerland has granted more than CHF 360 million to Kyrgyzstan to support the transition process. For more information, please visit www.eda.admin.ch/bishkek

The World Bank’s overall mission in the Kyrgyz Republic is to reduce poverty, promote economic growth and shared prosperity. 50 percent of the World Bank’s assistance to the Kyrgyz Republic is in the form of grants. The other 50percent is in highly concessional credits – no interest, and only a 0.75 percent service charge. Credits are repayable in 38 years, including a 6-year grace period, while grants require no repayment. The financial assistance to the Kyrgyz Republic since 1992 amounts to over US$ 1.1 billion. For more information, please visit: www.worldbank.org/kg

Switzerland is financing the Public Service Improvement project, which supported the implementation of a 35 Service Improvement Action Plans for a total of 91 million soms, including municipal contributions amounting to almost 28 million soms. The project aims to improve the efficient and quality of public services at local level.

The Swiss grant for the four municipalities mentioned above amounts 18 million soms, while the contribution of the municipalities amounts 4 million. Switzerland joins forces with the municipalities to finance priority projects identified through a participatory process involving all citizens and selected through a competitive process involving more than 40 municipalities. Service Improvement Action Plans describing how the project was selected, how maintenance and sustainability will be ensured, who the beneficiaries would be and how implementation will be monitored were submitted by the municipalities to a selection committee.

In Chon-Bagysh village of Sakaldy municipality, the drinking water system was rehabilitated and upgraded, enabling 450 households to be connected to the water system. In order to finance operational costs and maintenance, a fair tariff for drinking water was introduced after being discussed and approved by the citizens. In the Lenin municipality of Suzak rayon, a recreational park was rehabilitated and equipped with benches, LED lights and a playground for children. In Masy municipality, the kindergarten "Altyn-Beshik" was rehabilitated and equipped, allowing 181 children to benefit for pre-school education; 16 new staff was recruited and their salary will be financed by the municipality.

In Bostery municipality, classes adapted for childre with special needs were opened for the first time in the Issyk-Kul region. To ensure sustainability of the service, these classes were opened within the “Mamytov” school-gymnasium. By studying in such classes, children with special needs will benefit from quality education and communication with their peers. In Kumbel municipality, over 800 residents of a new suburban settlement could access safe drinking water thanks to the installation of a new drinking water supply system. To ensure the sustainability of the drinking water service provision, the municipality introduced innovative management decisions, including outsourcing and calculation of adequate tariff levels.

“It is crucial to keep in mind that improving service provision is an ongoing process. It is not only about procurement of new equipment or renovation of buildings. It is mainly about efficient, transparent and participatory management of local resources by local self-governments in order to ensure delivery of most needed and quality services to the population. The aim of the Swiss grant, which was complemented with local contribution, was to respond to immediate needs while developing mechanisms that enhance relations between citizens and local governments, enhance accountability of the local authorities and ensure sustainability of the infrastructures financed by the project", - said Véronique Hulmann, Ambassador of Switzerland to the Kyrgyz Republic, during her trip in the Jalal-Abad region.